There are so many, quantitative or qualitative decision-making techniques are available now a days for technology selection . But it is necessary, to understand goals of organization, needs of customer, and, to have the ability to identify and select technologies that will do best for the success of an organization, which will result to select the right technology, and Technology selection can be considered as a part of technology management system, The methodology used to select right technology that matches best with the organization’s objectives is described in brief in this paper.
RESEARCH APPROACH: – The expert panel performs review of literature that is related directly and indirectly to the technology, project selection framework and the discussion regarding the strength and weakness of the methodology.. The results of review along with recommendations of expert panel are used to identify and improve the understanding of the technology selection process. LITERATURE REVIEW (Technology & Project selection): – Technology & Project selection is a process to choose the best among several distinctive Alternatives.
The selection of an appropriate technology supporting to give best results on a project contributes accordingly to fulfill objectives of an organization. In the methodology, on having a set of project proposals, a subset of projects is selected among them, to maximize some objectives without violating the constraints. The group of projects is chosen by selection models and is called a portfolio. METHODOLOGY FRAMEWORK: – As there are different technology and project selection methods used to assist in the decision-making processes, nonnumeric and numeric models are described in this paper.
NONNUMERIC MODELS: – The Sacred Cow :- These project is suggested by a senior Officer of organization and development and progress on project is made as per Senior Officers Convince. The Operation and Competitive Necessity: – The projects that are emergent events like natural disasters or emergency maintenance, which are required in order to keep the system operating are known as competitive necessity projects, and need to be implemented in order to maintain a competitive position.
The different Nonnumeric models are; a) Comparative Benefit Model: – The criteria and recommendations of portfolio that best fits the organization goals and budget are the main aspects for evaluation of the proposal, in this model. b) Cognitive Modeling: – The understanding for actual process used by Manager is attempted in this modeling. In situation of a large number of projects, the methodology is intended to reduce the work of managers.
NUMERIC MODELS: – In these models Preference or Priority Ranking, is initially made that helps rank a set of proposed projects, and among the ranked projects, the manager selects investments starting from the top of the list, funding budgets to the best projects. There different Nonnumeric models are; a) Scoring Models: – In this modeling, the projects under consideration are scored by application of a mathematical formula to the factors believed to be of importance. The value of factors evolved by the formula are weighted to reflect its importance relative to the other factors, and the Projects are then ranked in order of their scores.
b) Economic Models: – In this modeling for project selection, comparison of project candidates is made, to their contribution to the firm profit. Economic models are based on objective data, and are easy to use, but require the estimation of future income information, which is difficult to obtain in the early stage of project. These models are among the most commonly used techniques in the selection process. Some of the some of the well-known Methodologies are as follows: – a) Cash Flow Payback: – The time from start until net cash flow equals zero, is focused in this technique and the time value of money is not accounted in it
b) Net Present Value: – NPV technique relies on the idea that worth for a unit of money, now is more than its worth in the future, as assumed that current money can generate more revenue during the time in-between. Its computation makes comparison possible between the present and future cash-flow stream, and this can be used to compare the projects having different cash-flow streams. c) Internal Rate of Return: – The discount rate to reduce the NPV of a cash flow profile to zero is called IRR. Its computation is made iteratively and adjusted so far the computed NPV equals zero.
In a project selection , the benefits generated by a project to an organization will be better with higher IRR value. General drawbacks of the economic models are:- 1) It is difficult to justify Risky projects, by using economic models. 2) The important aspects other then finance are ignored, as the models focus solely on the financial merits 3) By using economic models, it is difficult to determine the strategic fit of the technology for the organization. STRENGTHS AND WEAKNESSES OF FORMAL TECHNOLOGY AND PROJECT SELECTION MODELS
(i) STRENGTHS: – The benefits of using formal project selection techniques are;a) Simple technique can be used to prescreen the project, & technique leads to increased communication and involvement in the organization. B) It provides the opportunity for researchers to rethink the project and generate focused deliverables and deadlines. (ii) WEAKNESSES: – In spite of the numerous available models for project selection, very few formal methods are used in industry, due to certain reasons, as; a) Complexity of the model, b) Unavailability of data, c) Inadequacy of the model.Sample Essay of AssignmentExpert.com